Tax classification shift grants refund for wrongly paid central and state tax when supply reclassified inter state.

A taxpayer who pays Central and State tax treating a supply as intra State may obtain a refund if the supply is later held to be inter State, subject to prescribed conditions and procedures. Conversely, where integrated tax was paid on the belief a supply was inter State but is later held to be intra State, the taxpayer is not required to pay interest on the State tax found payable.

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